Manufacturing activity expanded at its fastest pace in 13 months in November, a private survey showed, indicating that the economy is strengthening in the third quarter after GDP data released on Thursday showed a rebound in the second quarter. The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose to 52.6 in November from 50.3 in October, backed by strong growth in new orders and higher production. Adding to the buoyant sentiment was India’s top automakers reporting a doubledigit sales growth in November, supporting the argument that the previous month’s dip was a one-off instance and that the industry was on course to posting strong numbers this fiscal year. Greater production led to the fastest rate of employment creation since September 2012, the PMI survey showed, but there was acceleration in inflationary pressure that could make a rate cut difficult in the next monetary policy review on December 6. GDP data released Thursday showed the economy reversed five quarters of slowdowns to post 6.3% growth in the July-September quarter compared with a three-year low of 5.7% in the previous quarter. “India’s manufacturing economy advanced on its path to recovery as disruptions from the recent tax reform (GST) continue to diminish,” said Aashna Dodhia, economist at IHS Markit, the agency that compiles the data. “Growth in output and new orders picked up to the fastest since October 2016, reportedly supported by reductions in GST rates and stronger underlying demand conditions.”